Track: Supply Chain Management (SCM)

Abstract

This study aims to explore the antecedents of supply chain collaboration (SCC) and then the relationship of the multidimensional construct of SCC with supply chain performance. The paper also delves into the mediating and moderating impact of commitment and transactional cost economics at the nexus of SCC and supply chain performance. A theoretical model and associated hypotheses were established, drawing upon the systematic review of the extant literature, transactional cost economic and resource-based theories. The model was empirically validated using Structural Equation Modelling on survey data from 635 managers of the agri-food supply chain in Tanzania. Results revealed that the most influencing SCC antecedents in the agri-food supply chain include incentive alignment, goal congruence, joint knowledge creation, and decision synchronisation. We also find that SCC as a higher-order construct significantly positively impacts supply chain performance (SCP). Further, the mediation-moderation test shows that the impact of SCC on supply chain performance is partially mediated by partners commitment while significantly moderated by transactional costs management. Supply chain partners who manage transactional costs recognise potential problems, monitor deviations, and halt the possibility of partners taking advantage of the relationship, enhancing better performance.

Our study synthesised social exchange, resource based-view, transaction cost economies and resources dependency theories to explain how supply chain collaboration affects supply chain performance. As a result, supply chain collaboration construct and transaction cost economies have also been improved. This study is one of the first to uncover the role of transactional cost management in moderating the relationship between collaboration and supply chain performance. The findings show that chain partners who manage transactional costs recognise potential problems, monitor deviations, and the possibility of partners taking advantage of the relationship, resulting in better performance. Furthermore, this study addresses the literature's recurrent demand for broadening the analytical unit beyond dyadic relationships. As a result, this study broadens the scope of collaboration research beyond specific business and buyer-supplier relationships to a three-stage supply chain.

The results inform managers that full benefits of collaboration can be reaped when firms share accurate, complete and relevant crops/products information, share ownership of expensive resources, especially agricultural equipment, storage and transport facilities; and set goals on issues such as transport and storage efficiency, production/sales efficiency and projected level of returns. Regarding collaborative communication, this study verifies that open and frequent adjusted and standardised two-way, multilevel correspondence is, for the most part, a better way of enhancing joint decisions and inter-connections. The causal influence of supply chain collaboration on supply chain performance is partially conveyed through partners commitment. Therefore, supply chain managers are advised to institute a commitment ethos in their respective organisations to enhance performance.

Keywords

Supply chains, Supply chain collaboration, Agri-food Supply chain, Transactional cost management, Partners commitment.